Caleres (NYSE: CAL) and Wolverine World Wide (NYSE:WWW) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Institutional & Insider Ownership
89.7% of Caleres shares are owned by institutional investors. Comparatively, 95.5% of Wolverine World Wide shares are owned by institutional investors. 6.2% of Caleres shares are owned by company insiders. Comparatively, 5.8% of Wolverine World Wide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Caleres and Wolverine World Wide, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wolverine World Wide||0||8||4||0||2.33|
Caleres currently has a consensus target price of $35.75, indicating a potential upside of 6.72%. Wolverine World Wide has a consensus target price of $28.77, indicating a potential downside of 2.00%. Given Caleres’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Caleres is more favorable than Wolverine World Wide.
Risk & Volatility
Caleres has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Wolverine World Wide has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
This table compares Caleres and Wolverine World Wide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wolverine World Wide||0.01%||16.20%||6.63%|
Earnings & Valuation
This table compares Caleres and Wolverine World Wide’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Caleres||$2.79 billion||0.52||$87.20 million||$2.16||15.51|
|Wolverine World Wide||$2.35 billion||1.20||$300,000.00||$1.64||17.90|
Caleres has higher revenue and earnings than Wolverine World Wide. Caleres is trading at a lower price-to-earnings ratio than Wolverine World Wide, indicating that it is currently the more affordable of the two stocks.
Caleres pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Wolverine World Wide pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Caleres pays out 13.0% of its earnings in the form of a dividend. Wolverine World Wide pays out 19.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Caleres, Inc., a footwear company, retails and wholesales footwear. The company operates through Famous Footwear and Brand Portfolio segments. It offers licensed, branded, and private-label casual, dress, and athletic footwear products to women, men, and children. The company operates retail shoe stores primarily under the Famous Footwear and Naturalizer names, which offer brand-name athletic, casual, and dress shoes, including company-owned and licensed brands, such as LifeStride, Dr. Scholl's Shoes, Naturalizer, Fergalicious, Carlos by Carlos Santana, Circus by Sam Edelman, Sam Edelman, Franco Sarto, Vince, Via Spiga, Fergie, Rykä, Allen Edmonds, Diane von Furstenberg, and George Brown Bilt brands. It also sells its products through e-commerce Websites that include Famous.com, Naturalizer.com, Naturalizer.ca, AllenEdmonds.com, SamEdelman.com, DrSchollsShoes.com, Ryka.com, LifeStride.com, ViaSpiga.com, FrancoSarto.com, CarlosShoes.com, FergieShoes.com, and GeorgeBrownBilt.com. In addition, the company designs, sources, and markets footwear to retail stores, such as national chains, online retailers, department stores, mass merchandisers, independent retailers, and catalogs. Further, it retails and wholesales men's apparel, leather goods, and accessories. Caleres, Inc. operates 1,289 retail shoe stores in the United States, Canada, Guam, and Italy primarily under the Famous Footwear, Naturalizer, and Allen Edmonds names. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in St. Louis, Missouri.
About Wolverine World Wide
Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories. The company operates through four segments: Wolverine Outdoor & Lifestyle Group, Wolverine Boston Group, Wolverine Heritage Group, and Wolverine Multi-Brand Group. It offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; children's footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources and markets a range of footwear styles, such as shoes, boots, and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, HyTest, Keds, Merrell, Saucony, Sebago, Soft Style, Sperry, Stride Rite, and Wolverine brand names. It also markets apparel and accessories under the Merrell and Wolverine brands, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; the Wolverine brand eyewear and gloves; and the Keds, Saucony, Sperry brand apparel. In addition, the company markets pigskin leather under the Wolverine Warrior Leather, Weather Tight, and All Season Weather Leathers trademarks for use in the footwear industry. Wolverine World Wide, Inc. sells its products in the United States, Canada, the United Kingdom, and certain countries in continental Europe and Asia Pacific to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, as well as through third-party licensees and distributors. As of December 30, 2017, the company operated 81 retail stores, as well as 29 consumer-direct Websites. Wolverine World Wide, Inc. was founded in 1883 and is based in Rockford, Michigan.
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